TNAG-0789-FCO40-993-Development-of-social-policy-in-Hong-Kong-proposed-contribut-1978 — Page 127

CHAPTER 6

ACCIDENT COMPENSATION

Development of accident compensation in Hong Kong

6.1

Accident compensation has developed naturally from the efforts of the Government and the community to help those who have suffered from natural disasters, particularly typhoons. The separate efforts that were made in the wake of individual typhoons were brought together in the Community Relief Trust Fund, which provided a permanent source of aid for victims of disasters. In 1973 this was replaced by the emergency relief scheme, the funds of which are underwritten by the Government.

6.2

That part of the emergency relief scheme which provides compensation for loss of life, injury or disability was used as the basis of compensation for the criminal and law enforcement injuries scheme which began in 1973. The two schemes, taken together with the workmen's compensation scheme (see Chapter 3), provide an embryo accident compensation system, in which payment of compensation is made on a lump sum basis without any test of means. There is a scale of payments, varying according to the person killed or the nature of the injury or disability.

The basis of accident compensation

6.3

Both schemes provide short-term support, designed to tide a family over a major and unforeseen setback, which will strain the family resources because of lost earnings or additional outgoings (such as the need to make special arrangements for looking after children when a wife is killed). They do not provide long term support; that is the function of other social security schemes. Nonetheless, the immediate and substantial help provided can be of much value since at a crucial time like this a family may be in great need of a cash reserve from which to meet the new and sudden demands on its resources. Once that period has passed, however, most families are able to become self supporting again.

the schemes identify families, which are vulnerable for a short time. This approach is consistent with, and complementary to, the "vulnerable group" approach of the welfare allowance scheme.

Accident compensation in other countries

6.4

General accident compensation, in a somewhat different form, has been introduced or is under examination, in a number of Commonwealth countries, including New Zealand (where it has made most progress), Australia and the United Kingdom. In those countries, accident compensation provides an alternative to no fault civil liability for damages and has accordingly raised legal and social security issues.

6.5

Accident compensation is non means-tested. It is therefore as necessary to look carefully at any proposals for extending accident compensation, as it is to look carefully at any proposals for extending

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